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Urban Growth: Trends Vs. Noise

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  • Duranton, Gilles

Abstract

This paper carries out a comparative analysis of the so-called classical urban growth models and ramdon urban growth models in order to explain their explanatory capabilities about urban growth and cities size distribution. The process of innovation through experimentation embedded in the classical urban growth models has shed new ligth to explain the coexistence of both diversified and specialized cities and role that diversified cities play as “nursery cities” by facilitating experimentation (Duranton and Puga, 2001). Classical urban growth models do not naturally generate the Zipf’s law (the rank-size rule for cities), whereas ramdon urban models provide a number of explanations for this key stylized fact. The theoretical foundations of both kind of models and their degree of compatibility are also examined. An exact statement of the conditions under which both type of models may be compatible is also needed.

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File URL: http://www.usc.es/econo/RGE/Vol19_ex/ingles/art1i.pdf
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Bibliographic Info

Article provided by University of Santiago de Compostela. Faculty of Economics and Business. in its journal Revista Galega de Economía.

Volume (Year): 19 (2010)
Issue (Month): ex ()
Pages:

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Handle: RePEc:sdo:regaec:v:19:y:2010:i:ex_1

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Postal: Avda Xoan XXIII S/N, 15704 Santiago de Compostela
Web page: http://www.usc.es/econo/RGE/benvidag.htm
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Related research

Keywords: Classical urban growth; Ramdon urban growth; Innovation; Diversified cities; Specialized cities; Zipf’s law.;

References

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  1. Gabaix, Xavier & Ioannides, Yannis M., 2004. "The evolution of city size distributions," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 53, pages 2341-2378 Elsevier.
  2. Federico Cingano & Fabiano Schivardi, 2004. "Identifying the Sources of Local Productivity Growth," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 720-742, 06.
  3. Guy Michaels & Ferdinand Rauch & Stephen Redding, 2008. "Urbanisation and Structural Transformation," CEP Discussion Papers dp0892, Centre for Economic Performance, LSE.
  4. Esteban Rossi-Hansberg & Mark L. J. Wright, 2003. "Urban structure and growth," Discussion Paper / Institute for Empirical Macroeconomics 141, Federal Reserve Bank of Minneapolis.
  5. Xavier Gabaix, 1999. "Zipf's Law and the Growth of Cities," American Economic Review, American Economic Association, vol. 89(2), pages 129-132, May.
  6. Berliant, Marcus & Wang, Ping, 2003. "Dynamic Urban Models: Agglomeration and Growth," Working Papers 1167, California Institute of Technology, Division of the Humanities and Social Sciences.
  7. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 739-767, August.
  8. Findeisen, Sebastian & Suedekum, Jens, 2007. "Industry Churning and the Evolution of Cities: Evidence for Germany," IZA Discussion Papers 3180, Institute for the Study of Labor (IZA).
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